Higher Education Policy Institute (HEPI): How to beat a cost-of-learning crisis: Universities’ support for students

The report considers the impact of rising costs on students and the “inadequate” levels of student finance that it says is available to many of them. Through website audits of the 140 members of Universities UK, it highlights the scope, scale and sustainability of interventions made by universities to support their students. Some 57 professionals working on the cost-of-living response at 18 UK institutions were interviewed, with case studies included from the University of Manchester and Buckinghamshire New University.

Download the report.

At-a-glance:

• Students are facing a cost-of-learning crisis. Many face financial hardship. More students work longer hours in paid employment, at a growing cost to their studies. Maintenance loans are inadequate for many students. The report argues (p13)
• A cost-of-living working group should be established at all universities to streamline their hardship fund, launch an emergency fund and include students in discussions about the cost-of-living response (p53)
• Students' unions should launch practical cost-of-living campaigns, founded on strong evidence and excellent relationships with university staff (p54)
• The Government should establish a cost-of-living task force, which consults regularly with students and sector leaders, and urgently reviews the level of maintenance support (p55)
• Three-quarters of universities (76%) help their students with food and drink. Nearly half (47%) help with health and more than a third (35%) with travel and digital. The least common type of support was for accommodation (11%) and energy support (6%) (p22)
• More than a quarter of universities operate food banks. Over half discount food and drink, and one in ten give out food vouchers (p23)
• Wales, the South West, the North East and the South East were the regions where universities were most likely to operate a food bank, with Northern Ireland and London the least likely (p24)
• Concerning the maximum hardship awards offered, the mean in 2022/23 was £2,470. The largest amount offered by any university was £5,000, and the smallest maximum amount was £350 (p27)
• The University of Manchester established a cost-of-living working group, which sat detached from university processes and included key individuals from across the University. It campaigned for and facilitated payments of £170 to more than 90% of Manchester’s students (p43)
• At Buckinghamshire New University, participation in all clubs, societies, and skills sessions was made free. Keele University allowed all students to request three seven-day extensions a term on the submission of written work without giving a reason. Manchester Metropolitan University streamed access to the hardship fund so applicants only need to submit a screenshot of their bank balance, with evidence of tenancy and a student loan (p35, p38, p47)

Implications for governance:

Governing boards are acutely aware of the cost of living pressures on students and staff and are active in discussions about what institutions can do to ameliorate them, not least to avoid the potential of students having to drop out and the impact such cases can have on B3 condition outcome data.

The HEPI report looks at a range of actions taken by universities to support students with squeezed finances and helpfully outlines some of the governance processes that led to these decisions.

With its range of case studies and examples from across the sector, governors are able to assess the extent of the support provided by their own institutions and whether some of the measures adopted elsewhere might be appropriate.

While there are examples of high-cost, universal action, such as Manchester University’s one-off payment to all students estimated to cost around £9 million, other simple measures can also be effective. The report outlines examples such as free shuttle buses between campuses, free bike hire and the installation of microwaves, fridges and hot water taps on campuses to allow student to heat up their own food and drinks.

In recognition of the scale of cost-of-living problems, many institutions have expanded their hardship support. In 2022/23, Edinburgh doubled it to £3 million, Leeds University more than tripled its funding and De Montfort has doubled its pot. Governors may wish to note that at Buckinghamshire New University, the students receiving hardship funding had a 7 per cent higher progression rate than those that did not.

Some institutions have put more resources into bursary schemes targeted at those from low-income households. Warwick and LSE increased theirs by 10 per cent. However, many universities stressed the difficulties felt by the ‘squeezed middle’, who do not qualify for full maintenance support but receive little money from families hit hard by the crisis.

Report data shows that the proportion of Russell Group universities that had set up food banks (33 per cent) was higher than the rate across other universities (26 per cent).

International students were frequently flagged as being at risk. Despite having to demonstrate they have enough money to fund their studies, universities reported that international students were increasingly underfinanced on arrival. However many hardship funds were only open to domestic students. International students were sometimes offered alternatives, which often paid less, while some institutions offered no hardship support to this group.

The vast majority of universities have created a cost-of-living hub which gives students advice, information and guidance on support and how to access it. However, a sizeable proportion (15 per cent) have no single place on their website where students could look to if they get into difficulties.

Some universities made extra efforts to reach more vulnerable groups, such as care-experienced, estranged students and care-leavers, who might receive additional bursaries. UCL Students’ Union sent targeted communications to those it expected to be most vulnerable and referred students to the university’s financial and wellbeing team. Queen Mary University London and Manchester Metropolitan University took a similar approach, reaching out to those students that data suggested would be most at risk.

This approach is recommended by the report, which suggests constructing a detailed profile of students’ needs by linking data on student access to cost-of-living interventions and support services with their data on attendance and attainment.

It is also important that the messaging around cost-of-living concerns is dealt with sensitively. To counteract any stigma, some institutions preferred to avoid loaded language, using ‘support’ or ‘success’ fund rather than ‘hardship’ fund, and ‘community pantry’ rather than ‘food bank’, for example.

Governors might want to assure themselves that their institution’s communications and messaging around support and mitigation measures ensure maximum exposure and take-up.